Spain's restructured banks will need 37 billion euros ($47.84 billion) and will cut their network of branches by up to 50 percent, while their bondholders will face losses, the European Commission said on Wednesday.

"What we've approved today means that the funds for the European Stability Mechanism can be disbursed," EU Commissioner Joaquin Almunia told a news conference, referring to the euro zone's permanent rescue fund that has agreed to lend funds to recapitalize Spain's banks.

"The total amount adopted today is 37 billion euros," Almunia said.

(Reporting by Robin Emmott and Foo Yun Chee; editing by John O'Donnell)